Exploring the Nexus between Mineral Endowment and Sustainable Economic Growth in Mineral-Rich Developing Countries: A Case Study of Zimbabwe

Abstract Context of the study The research was carried out to have a deeper understanding of the relationship between mineral endowment and sustainable economic growth to enhance evidence-based policy design by governments in mineral-rich countries with Zimbabwe serving as a case study. While other countries have successfully leveraged their mineral wealth, Mineral-rich countries like Zimbabwe are struggling economically and is facing the “Resource curse” which is a situation where an abundance of mineral resources is not translating into sustainable economic growth and societal improvement. Research objective The objective is to explore the relationship between mineral endowment and economic growth and its impact on business transformation and society in Zimbabwe through leveraging technological innovation. Research methodology A mixed-methods research design was used, wherein the study was conducted in Zimbabwe and the goal of the research was to find a correlation between mineral endowment (Production figures) and economic growth variables. A survey questionnaire and interviews were used to collect both primary and secondary data. The Shapiro-Wilk test was used to test the hypothesis and the Cronbach alpha was used to test data reliability. Pearson’s correlation, a statistical approach, was used to measure the strength and direction of the correlation of the variables. The questionnaire had a response rate of 95 out of the 110 questionnaires distributed. Interviews were held with government officials, mining industry leaders, environmentalists, economists, and local community representatives to explore their perspectives on how mineral endowment impacts sustainable development from 2011 to 2020. Comparative analysis and thematic approaches were used. Secondary data was collected from IMF and Transparency International Zimbabwe which are International. Data was analyzed using Jamovi and NVivo statistical packages for quantitative and qualitative data respectively. Key findings and practical implications · While countries like China and Chile are experiencing increased economic growth and development, developing countries like Zimbabwe and Venezuela have declining economies. This implies that mineral endowment is not necessarily a curse but governance issues such as corruption and lack of innovativeness may be the contributing factors. · Automation and other radical technological improvements have the potential to change the practices, sustainability and governance of resource extraction. · Automation and AI have the potential to improve efficiency and transparency in Zimbabwe and other resource-rich nations so that mineral resources are optimally used for economic ends and for the good of the society. · Incorporating technology or evidence-informed policy-making into resource management has positive policy implications. · There’s an unacceptable pattern of resource extraction by multinational companies from societies with little to no investment being made back on them. · There’s immense potential for technology and value addition spur industrial development, create jobs and promote entrepreneurship. By embracing relevant technology innovations, Zimbabwe can reinvent business practices to benefit from sustainable economic growth whilst supplementing the production and extraction of mineral resources with wider societal advancement.